Microsoft Corp.’s $69 billion acquisition of Activision Blizzard Inc. won approval from Britain’s competition regulator, removing the last major global regulatory hurdle that had prevented the completion of the biggest gaming deal in history.
The Competition and Markets Authority said on Friday that Microsoft’s restructuring proposal to sell some game rights to French publisher Ubisoft Entertainment satisfied its competition concerns. The agency said it will maintain competitive prices and better services.
The deal has been pending for months amid concerns from global antitrust regulators, including an initial veto from Britain. However, Microsoft gained unexpected momentum after it defeated the Federal Trade Commission’s court challenge to the deal. The EU approved the deal in May through behavioral remedies. This leaves the CMA as the sole regulator standing in the way of the deal.
Sarah Cardell, chief executive of the CMA, said: “We have sent a clear message to Microsoft that unless they fully address our concerns and stand by our position, the deal will be blocked.”
By the summer, Microsoft resubmitted an entirely different deal to the CMA in a last-ditch effort to seal a deal — one that included blockbuster games. call of Duty-Crossed the line.
Microsoft and Activision Blizzard have agreed to extend the deal deadline to October 18th.
“We have now overcome the final regulatory hurdles and completed this acquisition, which we believe will benefit gamers and the gaming industry around the world,” said Microsoft Vice Chairman and President Brad Smith.
Once the deal closes, Microsoft will oversee some of the most famous gaming franchises, including call of Dutymobile game candy Crush Saga and diablo.
In recent years, Microsoft buy The gaming company is committed to bringing top games to its ecosystem of Xbox consoles, Windows PCs and game subscription service Game Pass.Currently, Microsoft is third place The gaming console company behind Sony and Nintendo.
Microsoft executives say the deal is a way for the tech giant to tap into the $93 billion mobile market game market. However, British regulators are instead concerned about Microsoft’s potential to dominate emerging markets. Cloud gaming market.
With Activision’s games, Microsoft can attract more customers to its cloud gaming service, a feature of Game Pass.Analysts have point out Cloud gaming is still a niche market. Google and Amazon are trying to gain a foothold in this space.
EU says changes to deal Won’t According to Friday’s statement, another approval process is required in Brussels. The European Commission also stated that the UK’s commitment will not interfere with Microsoft’s business in the EU.
Even after the deal closed, the FTC continued to challenge the deal, although it was unlikely to derail its completion. The agency said it would continue its internal trial into the acquisition.
The CMA said on Friday it did find “limited remaining concerns” about the new deal, but Microsoft promised the CMA would enforce the terms of the rights sale to Ubisoft.
An Activision spokesperson said: “Formal approval from the CMA is great news for our future with Microsoft and we look forward to being part of the Xbox team.”
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